| FDI appears notable promotion on the international trade of developing country. Since the Reform, the trade and FDI in China have rapidly increased. FDI not only brings more employment and improves our economy, but also bring lots of new business model and management method to various industries. Machinery & equipment industry is a main part of mechanical industry and bound up with the state infrastructure construction. As FDI in China increasing rapidly, it becomes more and more important on this industry. In 2008, Foreign-funded enterprise, who is turning into the main force of the machinery & equipment products overseas trading, imported 55.2% and exported 35% of these products in China. Historical data demonstrates these products trading volume continuously growing, which is partly contributed by the Foreign-funded enterprises. However, the data demonstrates a contrast side that largely complete machine exporting is companied by largely parts importing, which shows that there is still an obvious gap with the leading core parts technique in the world. This condition is not good for the long term healthy development of this industry, even of our whole state industrial system. So, the author tried to give econometrics results by method researching and mathematical models analysis to prove the reality and correlations and further improvement policy suggestions.The researching bases on the theory of international trade and FDI, firstly analyzed the correlation between the FDI flow in and this industry imports & exports according to the data since 1990s, and then quantitatively analyzed the correlation between complete appliance exports and parts imports, coming to a conclusion that China's complete appliance exports extremely dependents on key parts imports. At last, by expounding theory and model analysis, the paper showed us suitable policy suggestions for promoting the development of this industry and solving the problem of largely parts importing. |
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